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Julli [10]
3 years ago
7

Mountain Teas wants to raise $14.9 million to open a new production facility. The company estimates the issue costs for legal an

d accounting fees will be $582,000. The underwriters have set the stock price at $27.50 a share and the underwriting spread at 8.15 percent. How many shares of stock must be sold to meet this cash need?
Business
1 answer:
ololo11 [35]3 years ago
8 0

Answer:

612,936 shares

Explanation:

The computation of the number of shares of stock must be sold is shown below:

Before that we have to compute

Required sales proceeds net of spread is

= (Raise amount + estimated cost for  legal and accounting fees) ÷ (1 - spread rate)

= ($14.9 million + $582,000) ÷ (1 - 0.0815)

= ($1,5482,000) ÷ (1 - 0.0815)

= $16,855,743.06

So, shares to be sold is

= $16,855,743.06 ÷ $27.50

= 612,936 shares

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Other things equal, the demand for a good tends to be inelastic (less elastic), the longer the time period considered. more the
Marta_Voda [28]

Other things equal, the demand for a good tends to be more inelastic A) the fewer the available substitutes.

Inelastic merchandise is usually necessities without applicable substitutes. The maximum commonplace goods with an inelastic call for are utilities, pharmaceuticals, and tobacco products. companies imparting such merchandise hold greater flexibility with prices because demand stays constant even if fees boom or decrease.

Inelastic is a monetary term regarding the static amount of a terrific or service while its price adjustments. The inelastic manner that when the rate goes up, customers' shopping for habits live about the same, and when the rate goes down, consumers' shopping for conduct additionally remains unchanged.

An elastic call for is one in which the exchange in quantity is demanded because of exchange in rate is huge. An inelastic call is one in which the change in the amount demanded due to an alternate in charge is small.

Learn more about inelastic here brainly.com/question/7694106

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8 0
2 years ago
The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea
steposvetlana [31]

Answer:

<em><u>P (x)   = 80x - 2x^2 - 3</u></em>

Explanation:

The Profit function is the revenue minus the cost.

Revenue = Price x Quantity =  X.px = x(88-2x) = 88x - 2x^2

Therefore the profit function P (x):  

P (x)  =  88x - 2x^2 - (8x+3)

<em><u>P (x)   = 80x - 2x^2 - 3</u></em>

<em><u /></em>

To maximise profit we use the 1st order condition: dP(x)/dq = 0

Therefore,  80 - 4x = 0

4x = 80

x = 20

So 20 leashes maximises profit.

P(x) = 80(20) - 2(20)^2 - 3

<em><u> P = $803  </u></em>

<em><u /></em>

The price to charge would be:

<u><em>p (x) = 88 - 2(20) = $48</em></u>

<u><em>The best reason would be that the price is a bit expensive for a leash so most people would not buy it.</em></u>

6 0
3 years ago
Calloway department store buys jackets for $19.75 each and sells them for $37.88 each. what is the markup rate based on cost?
Svet_ta [14]

Answer : The markup rate based on cost is 91.79747%.

We have

Selling price per jacket = $37.88

Cost per jacket = $19.75

Markup rate =[\frac{Selling Price - Cost}{Cost}] * 100

Substituting the values in the formula above we get,

Markup rate = [\frac{37.88-19.75}{19.75}] *100

Markup rate = [\frac{18.13}{19.75}] *100

Markup rate = 91.79746835%

8 0
3 years ago
What are some ways you deal with stress at school or at home? How could you use those techniques in the workplace? PLZZZZZ!!!!
Gnoma [55]
1. Take a break when needed
2. Reward yourself when you are finshed
3. Spend time with friends and family when you have free time
4. Get 8 hours of sleep a night
5. Always eat breakfast and don’t skip any meals.
6. Meditate
7. Get up and stretch your legs if you have a desk job
8. Deep breathing
9. Play relaxing music
10. Reduce your caffeine intake is a big one


Hope this helps :D
4 0
3 years ago
Gotham City has 10,000 streetlights. City investigators have determined that at any given time, an average of 1,000 lights are b
nadezda [96]

Answer:

11.11

Explanation:

λ=1/100/day

K=10,000

Therefore the expected length of time for replacing a burned-out lamp is equally the expected waiting time in the system which is W.

L= 1,000 (average number of burned-out lamps)

Effective arrival rate:

¯λ=λ(K-L) =1/100(10,000-1,000) = 90/day

Average length of time it takes to replace a burned-out lamp is:

W=L/¯λ= 1,000/90 =11.11

Mafia, Inc. is not living up to the contract since the company is supposed to replace the burned-out street lamp in an average of 7 days.

6 0
3 years ago
Read 2 more answers
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